After a strong 2020 and an even more explosive start to 2021, the world of cryptocurrencies is once again in the limelight. In this environment, it’s worth considering alternatives to the top three cryptocurrencies to locate the finest prospects for 2021. Chainlink (LINK), the tenth most valuable cryptocurrency by market value, might be one of the year’s best selections.
Chainlink has characteristics that distinguish it from other cryptocurrencies while being vulnerable to the overall growth of the crypto industry, driven by Bitcoin.
As a result, in this tutorial, we will go over the Chainlink cryptocurrency in detail, including its benefits and drawbacks, as well as how it operates and how it has evolved. We’ll also look into whether Chainlink is a suitable investment for 2021.
Chainlink (LINK) was created in September 2017 with an initial coin offering (ICO) that raised $32 million. The LINK price was $0.09 per token during the private token sale and $0.11 per token during the public token sale.
Price Chainlink 2018
The coin then began to double in value in 2018, rising from $0.15 to $0.43 per coin. It has witnessed many price hikes, bringing the currency’s price to one dollar.
Price Chainlink 2019
A probable collaboration between Chainlink and Google Cloud was announced on Twitter in June 2019. As a result, LINK’s price dropped from $1.19 to $1.93. When it was posted on Coinbase, the coin surged to $2.24.
Chainlink (LINK) was then valued at $4.45. However, ChainLink’s price had decreased to $1.61 at the end of August 2019.
Price Chainlink 2020
ChainLink saw a significant pricing change in January 2020, which ended in February. The coin went from $1.74 to $4.60 in a short amount of time during this period.
It significantly dropped to its original price level of $1.74 in March. It was able to rebound in April, rising to $3.
The price of LINK then skyrocketed on July 7, 2020, when China’s national network, the Blockchain Service Network (BSN), went live with 135 nodes connected to Chainlink’s price oracles.
The price of LINK dropped from roughly $4.87 to an all-time high of $5.60 as a result of the announcement.
Until mid-August, the Bitcoin maintained its upward trajectory, accumulating bullish momentum. It saw a brief period of bearish activity at the end of September 2020, before resuming its upward trend in October, coinciding with Bitcoin.
This was followed by a strong upward acceleration, which culminated in a new historic high of 17.38 Dollars on January 6, 2021.
Chainlink (LINK) Cryptocurrency History
Chainlink’s parent firm, SmartContract.com, was created in September 2014 with the goal of connecting external data sources with public blockchains. Smart contracts may now connect to data streams from any online API and data source via Chainlink, a solution developed by the team.
SmartContract.com’s original oracle solution for public blockchains, on the other hand, relied on centralized oracles, resulting in the oracle problem, which stems from SmartContract.com’s reliance on trusted third parties for external data. With the Chainlink network, a new decentralized oracle network, SmartContract.com attempted to overcome this problem in 2017. SmartContract.com (SmartContract Chainlink Ltd) raised $32 million in an ICO in September 2017 to fund the project.
AnChain.ai, a blockchain analytics startup, claimed in a blog post in September 2019 that their recent investigation of the LINK token identified a pattern of suspicious activity that indicated market manipulation. They claimed the data revealed evidence of a “pump-and-dump” plan, which involves artificially increasing the price of high-volume assets. The information was gathered between April 1 and July 26, 2019. There was no proof in the investigation that any Chainlink employees were directly involved in the activity.
Chainlink stated in October 2019 that it had developed a new enterprise-level blockchain product with Intel and Hyperledger.
Chainlink established cooperation with Polkadot, a blockchain technology company that aims to connect blockchain networks, in February 2020. Chainlink announced cooperation with Ethereum Classic, as well as much smaller DeFi and dApps initiatives, a week later.
The business that established the Oracle Chainlink network, SmartContract, then teamed with China’s national Blockchain Services Network (BSN) in June 2020 to help gather and manage off-blockchain data. The Delta Exchange began providing LINK token options contracts in the same month.
Following that, in July 2020, Chainlink teamed with Binance to deliver on-chain and off-chain market data to the exchange’s DeFi platform.
Chainlink exchange: Who determines the price of Chainlink?
The price of Chainlink cryptocurrency, like all other financial assets, is determined by supply and demand. If there are more buyers than sellers at time T, the price will rise. The price will drop if there are more vendors than customers.
As a result, the Chainlink pricing is established by the market’s supply and demand, rather than by any single individual or corporation.
As a result, it’s important to be interested in what might make investors want to sell or buy Chainlink. And the variables can be numerous, including the overall economic climate, the price of other cryptocurrencies, or even Chainlink-specific happenings. This is what we’ll go through in the following section.
What factors cause the Chainlink price to fluctuate?
Let’s now go into more detail about the factors that can vary the demand for the Chainlink (LINK), and therefore its price.
The economic context
The general economic context drives the demand for cryptocurrencies, like Chainlink, as it does for all financial assets. A financial crisis, for example, will make it more difficult for people to purchase bitcoins. In another aspect, central banks’ accommodating monetary policies, which devalue national currencies, encourage investors to consider cryptocurrencies like Chainlink. Finally, when the economy is doing well, operators are more willing to take chances in emerging sectors like cryptocurrencies.
The Evolution of Bitcoin
The price of Bitcoin affects all cryptocurrencies to varying degrees. If Bitcoin rises, other cryptocurrencies should rise with it, or at the very least follow BTC’s lead without too much delay. As a result, an advance in BTC/USD will be seen favorably by Chainlink and all other cryptocurrencies. Similarly, a downward trend in the most important cryptocurrency should have an impact on the others.
The evolution of the Chainlink project
Unlike Bitcoin, which is designed to be used as a currency, Chainlink has a technical use in the real world since the LINK token is used to run the Chainlink platform, which attempts to connect blockchains with non-blockchain applications. This technology opens up possibilities that are still unimaginable, and Chainlink continues to develop and improve it. These project evolutions, which aim to make it better and more valuable to a wider audience, should be viewed as bullish elements for the LINK.
Chainlink Price Prediction 2021
Data fragmentation is a major issue for many businesses since it makes data collection difficult and results are unpredictable. As its decentralized network of oracles enters the fourth industrial revolution, Chainlink is transforming the financial landscape by reimagining how financial contracts function. This permits it to have a bright future in 2021 and beyond.
The potential for development is enormous, given the progress made by the Chainlink team and the popularity of the cryptocurrency.
The project has already aided major corporations such as Google, Gartner, Binance, AAVE, and others, demonstrating its utility. Currently, the platform only supports Ethereum smart contracts, but there are plans to expand the infrastructure and integrate additional blockchains in the future. Chainlink collaborates with Swift, Gartner, and IC3 and was the first to address this gap, establishing a network of dependable decentralized oracles, giving the company a significant competitive advantage in the future.
Below are some price forecasts for Chainlink from bitcoin specialists.
Wallet Investor Forecast
According to the WI projection, LINK is a great long-term (1 year) investment. According to forecasts, ChainLink’s price might reach $28.4 in 2021. In one year, this equates to a potential gain of +140 percent. According to Wallet Investor, ChainLink (LINK) will be worth $82.1 in 2024.
The price of Chainlink (LINK) will rise in 2021 according to DigitalCoin, which anticipates that the price of the cryptocurrency could reach $32.65 by the end of 2021.
Trading Beast Forecast
Chainlink’s price is expected to reach $1.92846, according to Trading Beast. The projected high price is $2.43788, and the expected low price is $1.65776, according to their calculations. They believe the price of LINK will reach $82.1 in five years.
Chainlink definition: What is it?
In comparison to other blockchain projects, Chainlink is unique. The company’s business model is primarily focused on developing smart contracts for the public. Chainlink aspires to decentralize the internet by bridging the gap between blockchains and real-world applications.
Smart contracts may securely connect with off-chain platforms thanks to the Chainlink system’s decentralized network of Oracles. SmartContract, which was founded in September 2014 by CEO Sergey Nazarov and CTO Steve Ellis, was responsible for the creation and formation of Chainlink.
The node operators at Chainlink collect data from off-chain systems and convert it into blockchain-compatible formats. They are given the LINK cryptocurrency, which is an Ethereum-based ERC-20 token. The price of LINK, according to the developers, is directly proportional to the number of node operators.
Chainlink is more than a cryptocurrency designed to serve as a medium of exchange or a vehicle for investment and speculation; it is a project that addresses a specific need.
What is Chainlink used for?
The Chainlink is not intended to be used as a means of exchange or as a simple instrument for speculation or investing. Indeed, the Chainlink project addresses a specific technological requirement.
Chainlink is a decentralized oracle network that feeds real-world data into blockchain smart contracts. Smart contracts are pre-defined information-evaluation agreements. When specific criteria are met, they execute automatically. The LINK is a digital asset token that is used to pay for network services.
As a result, Chainlink has developed a method for delivering accurate data to smart contracts on blockchains in a reliable and fast manner.
To summarize, Chainlink enables blockchains to communicate with API-based web applications in order to create a completely connected internet.
How does Chainlink work?
In this section, we’ll go through how Chainlink works to connect blockchains and other computer systems.
Components on and off the blockchain make up Chainlink technology. Chainlink is a network of oracle nodes that connect to public blockchains off-chain (initially only Ethereum). Chainlink is a collection of smart contracts that serve as an interface for requesting data feeds from other contracts.
It is necessary to review smart contracts and oracles in order to properly get how Chainlink works.
Intelligent contracts, or smart contracts
Smart contracts are immutable, verifiable contracts that, when certain conditions are satisfied, execute automatically in an IF/THEN framework.
The blockchain traditionally provides the data that defines these conditions.
Oracles were recently brought into the bitcoin ecosystem to allow smart contracts to use off-chain data.
Because centralized oracles can be unreliable or defective, they reduce the benefits of smart contracts on the blockchain.
Chainlink is a decentralized network of nodes that connects off-blockchain data and information to on-blockchain smart contracts via oracles.
Description of the Chainlink process
When a smart contract demands data, the process begins on a smart contract blockchain. A Requesting Contract is issued by this smart contract.
This request is logged as an “event” by the Chainlink protocol. It then builds a smart contract to get this off-chain data, which is also on-chain. Three subcontracts are generated under the SLA contract. A reputation contract with a chain connection. A chain-link order matching contract is also available. Finally, a contract for chain link grouping.
The reputation contract, on the other hand, verifies an oracle provider’s validity and performance history before evaluating and discarding untrustworthy or disreputable nodes.
The chain link order matching contract gets bids for the demand from the chain nodes and transmits it to the asking contract. It then chooses the right number and type of nodes to fulfill the request.
Finally, the grouping contract checks and/or reconciles all of the data from the chosen oracles to produce an accurate result.
The Chainlink Blockchain Explained
In this section, we’ll go over the most crucial aspects of Chainlink’s operation and characteristics, as well as its blockchain. The role and use of the LINK token in the Chainlink network will also be discussed.
The characteristics of the Chainlink blockchain
Let’s start with the concepts that underpin the Chainlink blockchain.
>> End-to-end decentralization
Decentralized oracle networks made up of independent and resilient nodes are used in Chainlink. This ensures high availability and resistance to tampering.
>> Very secure nodes
The Chainlink project provides cryptographic verification of oracle network worldwide security. Each piece of data is digitally signed and saved on the blockchain by nodes.
>> High-quality data
Any password-protected or authorized API data source can be accessed via Chainlink, which is redundantly checked by many nodes to avoid a single point of failure.
>> Enhanced security
Multiple levels of protection, like as cryptographic signatures, trusted execution environments, and zero-knowledge proofs, can be applied to the LINK cryptocurrency.
>> Open-source community
Chainlink also boosts development and enhances network security. This is possible because of the ongoing contributions of node operators, developers, researchers, security auditors, and others.
The role of LINK tokens on the Chainlink blockchain
Chainlink node operators are paid using LINK by contract holders. The operator of the Chainlink node sets the prices. This is based on the current market for data and the demand for data it can give.
Operators of Chainlink nodes also use LINK to invest in the network. Chainlink requires node operators to deposit LINK. This indicates their dedication to the network and promotes excellent service.
In addition, the Chainlink network penalizes faulty or dishonest nodes by penalizing their LINK stake for poor performance.
Finally, keep in mind that the LINK is developed on Ethereum and follows the ERC-20 token standard. It can be purchased and traded in exchange for fiat money or other digital currencies.
Chainlink course review: Is it too late to invest?
Chainlink has several benefits. However, with cryptocurrency’s recent rapid surge, it’s unclear whether it’s too late to invest. This section contains some of the answers.
Pandemic-related cryptocurrency market boom
One of the most significant outcomes of the covid-19 outbreak has been the resulting cryptocurrency explosion. As analysts point out, the stimulus packages and ultra-loose monetary policies implemented to combat the pandemic’s impact have played a critical role. These policies depreciate national currencies mechanically.
This emphasizes the anti-inflation benefit of cryptocurrencies, which are generally limited in supply. That is, each cryptocurrency’s maximum quantity, including the Chainlink, is written into its code and cannot be changed. As a result, “impressions” of new cryptocurrencies, such as FIAT currencies, are unable to devalue cryptocurrencies. This helps to understand why cryptocurrencies are so popular in 2020. And, to the delight of all cryptocurrencies, including Chainlink, this mania is expected to expand even more in 2021.
The democratization of the blockchain will highlight the usefulness of the protocol
Another reason why this cryptocurrency should expand in 2021 is the utility of the Chainlink project. Its purpose of connecting blockchains and standard computer APIs fits a variety of requirements. Blockchain technology is applied in many different fields outside cryptocurrencies. Chainlink’s technology, on the other hand, is intriguing and beneficial for any organization that uses a blockchain. To summarize, the more democratized blockchain becomes, the more the protocol will benefit.
How to buy Chainlink?
Buy Chainlink from Binance
Purchasing Chainlinks via a broker is the most direct way to receive them. This coin is only available through a few internet brokers. Fortunately, Binance, one of the best brokers on the market, is one of them.
Binance offers CFDs for buying Chainlink and other cryptocurrencies. This eliminates the requirement for a cryptocurrency wallet. Above all, it gives you leverage.
You will be able to buy more Chainlink than the amount deposited in your Binance account if you register an account with them. If there is an increase, the gains are multiplied. However, there are also losses in the event of a decrease! As a result, leverage should be utilized with prudence.
Binance is also a regulated broker with a platform that is extremely user-friendly. In a nutshell, it’s great for novices who wish to learn how to use Chainlink.
Conclusion: Is Chainlink Cryptocurrency a Good Investment?
Chainlink is presently among the top ten most valuable cryptocurrencies. This gives it great exposure to the cryptocurrency market’s general explosion, which many analysts think will happen in 2022.
Apart from being a gamble on cryptocurrencies in general, Chainlink offers its own set of advantages. As blockchain technology spreads, more firms will be faced with the problems that its platform and technology solutions. As a result, Chainlink’s utilization, and thus its price, may rise in tandem with the democratization of blockchain technology, which is currently beginning. As a result, Chainlink is a cryptocurrency that you should look into. And if you are already convinced, there are many arguments that indicate that to take action, the best choice is the Binance broker.
Unlike Bitcoin, which is designed to be used as a currency, Chainlink has a technical use in the real world since the LINK token is used to run the platform, which attempts to connect blockchains with non-blockchain applications.
The price of Chainlink will rise in 2021 according to DigitalCoin, which anticipates that the price of the cryptocurrency could reach $32.65 by the end of 2021.
Chainlink is more than a cryptocurrency designed to serve as a medium of exchange or a vehicle for investment and speculation; it is a project that addresses a specific need.
What is the Chainlink prediction for 2022? Chainlink has a promising future in 2022.
What are the main factors that could drive Chainlink up? The first favorable element for Chainlink is the rise of Bitcoin and the cryptocurrency market in general.
What could Chainlink be affected by? The primary danger to Chainlink’s price is a sudden collapse in Bitcoin, whether due to profit-taking or any other reason.
Frequently Asked Questions about Chainlink
Finally, to end this guide, we will answer the most frequently asked questions about Chainlink.
What is the Chainlink prediction for 2022?
Chainlink has a promising future in 2022. The cryptocurrency should gain from the market’s expected to surge, according to experts. Several analysts have made bold predictions for 2022 and beyond, as we’ve seen in this guide. Furthermore, Chainlink’s inherent attributes are optimistic factors that should be underlined in 2022.
What is the best intermediary to buy Chainlink?
Chainlink can be purchased through CFDs, which is the most convenient method. This is accomplished through the use of an internet broker. This eliminates the need for a wallet while still granting leverage. Only a few brokers provide Chainlink. This is thankfully the case with Binance, one of the most secure.
What are the main factors that could drive Chainlink up?
The first favorable element for Chainlink is the rise of Bitcoin and the cryptocurrency market in general. In addition, Chainlink offers answers to the issues that businesses with blockchains face. The blockchain, on the other hand, is a technology that should expand swiftly. As a result, the utility of the Chainlink project should be highlighted, and the price of the cryptocurrency should rise.
What could Chainlink be affected by?
The primary danger to Chainlink’s price is a sudden collapse in Bitcoin, whether due to profit-taking or any other reason.
What is Chainlink’s position in the cryptocurrency rankings?
Chainlink is now the world’s tenth-largest cryptocurrency. It’s a tie for a ninth-place between Stellar and Binance Coin. As of January 7, 2021, its entire market value was 6.56 billion dollars, with a unit price of 16.32 dollars.